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The Roemer Report On-Line, Sept, 2001
FATIGUE PLAGUES SHORT-HAUL DRIVERS TOO: According to a recent study by the Federal Motor Carrier Safety Administration, fatigue is the fifth most critical problem short-haul drivers face. Short-haul drivers represent the largest segment of the trucking industry. The study asked short-haul drivers to rank problems that contributed to critical incidents or near-crash events. The drivers said the number one difficulty they face are problems caused by drivers of light vehicles. In addition, they said stress due to time constraints, inattention, and problems related to roadway and dock designs were also critical issues. According to the study, short-haul drivers (those who travel a maximum of 100 miles from their home base) spend about one-fourth of their workday driving. Elements related to fatigue included not enough sleep, demanding physical labor, lack of air-conditioning, excessive waiting to unload, and erratic meal schedules. Researchers said to alleviate fatigue-related problems companies should allow drivers to take breaks for short naps without being penalized. In addition, they said companies should educate drivers about the hazards of operating heavy equipment when tired. And since the study indicated that younger and inexperienced drivers were significantly more likely to be involved in critical incidents than older drivers, researchers recommended that federal and state governments should improve training for these drivers.
MEXICO GETS TOUGH ON U.S. TRUCKS:
The Senate recently passed a transportation spending bill that could prevent
Mexican trucks from entering the United States for as many as three years.
The bill also would impose 22 new safety requirements on Mexican trucks when
they do enter. Mexican President Vicente Fox said if the measure became law,
he would ban U.S. trucks from traveling through Mexico. President Bush vows
to veto the transportation bill, since it violates the North American Free
Trade Agreement by imposing stricter regulations on Mexican trucks than on
Canadian trucks entering the country.
The tougher safety standards outlined in the bill would require (1) inspections
of Mexican trucks before they crossed the border, (2) an additional 80 inspectors
at the border, (3) weigh-in-motion and fixed scales at all border stations,
and
(4) U.S.-based insurance for Mexican carriers. The White House maintains that
the standards are too strict as well as unfair since they differ from standards
applied to U.S. and Canadian trucks. Safety groups say the tougher standards
are necessary since Mexican trucks are put out of service at a higher rate
than U.S. and Canadian carriers. But Senator John McCain (R., Ariz.) says
that "Safety is little more than a straw dog in this fight. The truth
is the Teamsters don't want competition from their Mexican counterparts."
Meanwhile, President Bush has assured Mexico that the border will be open
January 1.
TOUGHER STANDARDS SET FOR CDLs: Individuals interested in obtaining a commercial driver's license (CDL) can expect some stiffer requirements ahead of them. The Federal Motor Carrier Safety Administration (FMCSA) recently proposed several changes to the CDL program intended to make U.S. highways safer. The proposed new requirements include: (1) Disqualifying drivers who drive a commercial motor vehicle (CMV) after their CDL has been revoked, suspended, or canceled for violations while operating a CMV. Drivers will also be disqualified if they cause a fatality through the negligent operation of a CMV. (2) Disqualifying drivers if they have been convicted of a drug- or alcohol-related offense while operating a non-CMV. (3) Allowing the Secretary of Transportation to disqualify drivers who pose an imminent hazard. (4) Before they issue or renew a CDL, states will be required to request an applicant's record from each state that issued any type of driver's license. (5) If a truck driver has received a suspension or revocation of a CDL for an offense committed in a private car, the suspension will also bar them from operating a CMV. (6) Withholding 5 percent of a state's federal highway funds if the state does not substantially comply with FMCSA regulations.
DRIVING SAFELY ON YOUR OWN TIME: The Federal Motor Carrier Safety Administration (FMCSA) is now targeting unsafe drivers who have commercial driver's licenses but are driving their own car or truck on their own time. Proposed regulations would require that drivers be stripped of their CDL if they commit a serious driving violation in any vehicle. Drivers would lose their license for one year if convicted of driving under the influence of alcohol or drugs, refusing an alcohol test, leaving the scene of an accident, or using the vehicle to commit a felony. Hazardous materials haulers committing the same offense would lose their CDL for three years. Should any driver commit any of those violations twice, he would lose his CDL for life. FMCSA spokesman David Longo conceded that some CDL drivers may drive a truck more safely than a car. "Our point is that dangerous behavior in one might lead to dangerous behavior in the other-a driver who takes risks and violates motor vehicle regulations in a car is more likely to commit similar violations in his or her commercial motor vehicle."
KEEPING FUEL COSTS IN CHECK: These days controlling fuel costs requires more than limiting out-of-route miles, reducing idling, and buying at the lowest prices. While carriers are relying on these tried-and-true tactics, they're also using one or more of the following methods to reduce fuel costs: (1) Buying terminal fuel. In general, terminal fuel costs significantly less than fuel at truck stops. Many vendors offer a variety of pricing programs for purchasing bulk fuel, such as cost-plus programs and fixed-term prices. The average cost of terminal fuel this year has been a mere $1.16. Of course other expenses must be factored in, including freight charges, insurance, labor, and costs related to the pumping station. (2) Negotiating volume discounts. In a recent survey, almost 30 percent of carriers said they negotiate volume discounts at select truck stops by pooling their fuel purchases. By guaranteeing to buy a certain volume of fuel, the carriers can negotiate discounts or cost-plus agreements at truck stops. Discounts are usually greater at independently owned truck stops than at regional or national chains. (3) Joining a co-op. Smaller fleets that cannot negotiate for volume rates can join a co-op program to lower fuel costs. One 35-truck carrier in Tennessee, for example, buys all its fuel through the co-op program of the National Association of Small Trucking Companies. Fuel prices are determined by adding the applicable taxes, shipping charges, and a pumping fee to the average rack price in the region. (4) Using technology. Some fleets rely on optimization software to help them make their purchasing decisions and coordinate fuel stops. Others use the Internet, including web sites like Gocomchek.com, a free site that allows users to check prices at some 10,000 locations.
A CULTURE OF SAFETY: When people at your company hear the question, "Who is responsible for safety around here?" how do they respond? Ideally, every person will answer, "I am," writes Jerry W. Bowman, executive vice president and general manager of Cardinal Logistics Management in Concord, North Carolina. At Concord Logistics, management believes safety has to be a company's top priority-an integral part of everyone's job. Bowman highlights the following safety rules at his company, which any carrier may do well to follow: (1) Safety is not a program; it is a part of the culture. Setting aside time each week to focus on safety is not the answer. Safety must be incorporated into each business process. (2) Management must demonstrate its commitment to safety. Safety must be as important as customer service and the bottom line. (3) Don't just hire warm bodies, hire the best you can. Finding good drivers is difficult, but you're asking for trouble when you hire drivers with poor employment records and poor driving records. (4) Have zero tolerance for unsafe behavior and shoddy compliance. "Drivers and their managers must be held accountable for their actions," says Bowman.
ADDED VALUE: The best product doesn't always win in today's race for customers. Instead, the best product with the best added value often takes the trophy. Or as Robert Tucker, president of The Innovation Resource, a research and executive development company, explains, "Realize that you're not selling a product, you're selling the value that is wrapped around it." Tucker says value is actually a composition of three primary elements: the quality of the goods or services, the service itself, and the price. He says that today's organizations must concentrate on these three elements and must also watch for trends that change what customers perceive as value. Tucker suggests following these five basic rules to guarantee you are offering business value: (1) Define value. Your definition of value may be very different from that of your customer. Make sure you create the value that your customer wants. (2) Solve problems. A salesperson's job is much more extensive than closing a deal. Be prepared to solve your customer's problems and to be "entertaining" in the process. (3) Raise the bar. Determine what your customer's greatest need is. Then offer more. (4) Get creative. Continually find new and innovative ways to address your customer's needs. (5) Repeat the cycle. Every value-added proposition has a limited life span. Be ready to add more value.
Failure is the opportunity to begin again more intelligently.
-Henry Ford, Founder, Ford Motor Company